文章基本信息

标题：Monopolist’s mark-up and the elasticity of substitution
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作者：Vrankić, Ilko ; Krpan, Mira ; Herceg, Tomislav 等
期刊名称：Croatian Operational Research Review
印刷版ISSN：1848-0225
出版年度：2017
卷号：8
期号：2
页码：377-390
DOI：10.17535/crorr.2017.0024
语种：English
出版社：Croatian Operational Research Society
摘要：This paper analyzes the mark-up of the price of a product over marginal costs for a monopolist using Appelbaum’s theoretical model. The profit maximization model of an industry that uses the monopolist’s product as its input is formulated. Our goal is to express the monopolist’s mark-up as a function of the elasticity of substitution for the respective industry and to analyze how changes in the elasticity of substitution affect the mark-up ratio. Consequently, the CES production function along with its substitution parameter is chosen. An analytical description of changes in the elasticity of substitution and its influence on the monopolist's mark-up is given. All scenarios are supplemented by geometrical illustrations, economic interpretations and numerical examples.
关键词：profit maximization; monopolist; mark-up; elasticity of substitution